The Existing Status Of Bilateral Investment Treaties In Ethiopia Issues And Trends

In the world we are living in, investment is a proper route to economic prosperity. Here, we havernto discern the fact that this mainly implies foreign investment, and different countries endeavorrnto attract this kind of investment. Accordingly, there is a fruitful proliferation of foreign directrninvestment that presupposes well regulatory system which at the same time insures bothrninvestment liberalization and protection.rnDuring the past few decades, many developing countries have begun to sign bilateral investmentrntreaties (BITs) in an attempt to attract greater levels of foreign direct investment (FDI). Byrnsigning BITs, investment-seeking governments are thought to more credibly commit tornprotecting whatever FDI they receive, which in turn should lead to increased confidence amongrninvestors and ultimately greater FDI inflows. The writer finds that whether BITs increase FDIrndepends upon whether a government develops a reputation for actually upholding its BITrncommitments.rnFor achieving those in an effective and efficient manner, nations of the world are entering intornbilateral investment treaties (BITs) in which this study tries to explore by giving a due emphasisrnon Ethiopia. Currently, Ethiopia has entered into about 30 BITs with different countries, and it isrnthe writer’s contention that they will support the country’s efforts in attracting foreignrninvestment especially from those she has already entered that kind of treaty. They will have theirrnown role for the development of the country if well regulated.rnThe basic purpose of this research is to analyze the trends and issues regarding BITs, and disputernsettlement under Ethiopian law. The main issues of the research are how to appreciate the effectsrnof BITs issues and trends. The research methods include review of literature and legal analysis.rnPrimary and secondary sources were consulted in the research. Interview has been conducted inrndata collection.rnThe research findings reveal that bilateral investment treaties are not as such effectivelyrnimplemented in Ethiopia and it is recommended that we should develop our capacity.

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